What Are Happy Feet, Exactly?
His pleasant footwear is called Happy Feet, and it consists of enormous slippers that mimic gigantic shoes and make walking seem like walking on air. Happy Feet was created by Pat Yates of Louisville, Kentucky. They are his favorite animal or team, according to him. Because his slippers are so comfortable, they won’t be able to take them off.
Quick Facts on Product:
|Company Name||Happy Feet|
|Product||Slippers with style and comfort|
|Investment Asking For||$375,000 For 15% equity in Happy Feet|
|Final Deal||$375,000 For 25% equity in Happy Feet|
|Episode||Season 5 Episode 23|
|Business Status||In Business|
The NBA, NCAA, NFL, and MLB have all licensed the slippers, which come in a variety of color patterns. This invention has unquestionably thrust him into the limelight. The firm has stated that California, Florida, and Kentucky are the top three states in which they sell the most Slippers. They ship internationally, and their website even lists foreign delivery options.
Who Is the Founder of Happy Feet?
Pat Yates, the Happy Feet creator, is a witty man who claims to reside in a modest apartment in Louisville, Kentucky. He is known as the “Happy Feet Man” and has been creating slippers for 11 years. He had a buddy purchase some fuzzy boots that looked like his slippers, and the firm demanded that they promote them instead.
With that in mind, they came up with the notion of turning his shoes into a legitimate company. Yates went on Shark Tank to try to get money when the items were completed. After his brother got him a pair of fuzzy boots, Pat Yates spotted his first business potential. They made $2,000 by selling at the local flea market.
After that, he decided to create his own business, which he named Happy Feet. Yates intended to sell the slippers on his website, but he didn’t have the money to make it happen. That’s when he decided to apply to Shark Tank in the hopes of receiving finance for his company’s expansion.
What Happened to Happy Feet at Shark Tank Pitch?
Pat goes on Shark Tank to pitch for investors; he was asking for $375,000 in return for 15% ownership of his firm, with a valuation of $2.5 million. He stresses how vibrant and fun Happy Feet are as the camera wanders through a wide range of merchandise. They sell items with university logos, animal slippers, and even Shark slippers. Pat claims that his sales are strong, but that he needs money to expand into retail and international markets.
To the Sharks, he delivers samples. Robert is offered a pair of penguins, but he prefers lions. The Sharks are pleased with the way it fits and feels. Pat goes on to add that in the previous three years, the company has made $6.5 million. That’s $2.6 million, with $2.2 million coming via the internet. He only gets $650,000 on $2.6 million in sales. Barbara has made the decision to quit Happy Feet, believing that it has achieved its apex. Robert leaves when he couldn’t see how he can provide value.
Kevin doesn’t want 15%; instead, he wants $375,000 plus a $3 royalty every pair until he recoups his investment, after which it drops to $1.50 per pair and he receives 5% of the business. Lori wants to split the contract with Kevin, and he agrees if they boost the company’s equity to 6%. Mark is certain that Pat is the real deal, but the company isn’t for him, so he walks away.
Pat replies with a $375,000 offer for a 20% stake in his firm, citing his dissatisfaction with the royalties. Lori stays Kevin’s partner, and Kevin counters the offer for $375,000 for 30% ownership of the firm. Robert re-enters the fray with a $375,000 investment for a 30% stake in the company. Pat replies with a $375,000 offer for a 25% interest in his firm, which Robert finally accepts, and the sale is completed.
What Happened to Happy Feet After Shark Tank?
Since Pat and Robert closed their deal, the company has been running well. The company’s revenues have increased by $4.2 million since appearing on Shark Tank. Robert helped with a comprehensive website overhaul. Happy Feet has been approached by DreamWorks Motion Pictures about licensing movie character slippers, and the company now employs 16 people.
According to Robert, the licensing agreement might bring the company tens of millions of dollars in revenue. He’s now expanded his collection to include Marvel-themed slippers. In 2021, the company is still in business, generating $5 million in yearly sales.
Happy Feet’s Net Worth:
During the pitch, the firm was valued at $2.5 million net, and since then, the company has produced a lot of sales, causing the valuation to rise.